Japanese Towel Association Wants
Chinese Imports to Be Restricted

By

Masayoshi Kanabayashi Staff Reporter of The Wall Street Journal

Updated March 22, 2001 12:01 a.m. ET

Japanese towel makers are lobbying the government to shield them from an influx of imports from China. But the Japanese importers and retailers handling the cheap textiles insist they have every right to sell the products. Their refusal to throw in the towel is making the dispute an increasingly interesting test case of Japanese trade policy.

Late last month, the Japan Towel Industry Association asked the Ministry of Economy, Trade and Industry to invoke the so-called safeguard clause under World Trade Organization rules...